DECEMBER ISSUE: Property Management–Shrinking Subleases
- Dec 18, 2014
In this post-recessionary market, “less” often means “more” when it comes to subleased corporate office space. The nearly 40 million square feet of subleased space that came on the market in 2008 and 2009 has largely been absorbed, bringing the volume in line with pre-recession levels, according to JLL
“The third quarter (of 2014) saw the most expansion activity of the recovery so far,” said John Sikaitis, JLL’s managing director of office research. “There was the largest amount of occupancy gains that we’ve experienced in six-plus years.”
During the third quarter, 502 corporate tenants occupying more than 20,000 square feet signed leases. Significantly, 43 percent of them took more space than they had previously occupied—double the percentage seen in any previous quarter since the beginning of the recovery, Sikaitis reported.